The new measure allows small businesses an immediate tax deduction for any individual assets purchased that cost them less than $20,000.
Details released by the government confirm this $20,000 limit applies to each individual item, with businesses allowed to apply the new measure to as many individual assets as they wish.
The arrangements came into effect from last night and will continue until the end of June 2017.
While the treasurer had already announced several measures to support small business, this particular initiative was only confirmed last night.
The measure has been well received, with a number of commentators calling it a positive move for small business.
Alex Malley, chief executive at CPA, described it as a "positive move" that will support vital and much needed business investment.
“Asset write-off relief will have an important cash flow benefit for small businesses, helping them to make vital capital investments and grow their businesses,” Mr Malley said.
Chartered Accountants Australia and New Zealand (CAANZ) also welcomed the move, describing it as “just what the doctor ordered”.
“It’s a very practical way to help these businesses work smarter with modern equipment and technology," CAANZ said.
“The cost of setting up a business will be reduced, with legal and accounting advice being written off and the process to register a business simplified. This should boost innovative start-ups and create yet more energy in the engine room of the economy."
Stephen Healey, president of The Tax Institute, also lent his support for the measure.
“Allowing an immediate deduction for assets costing up to $20,000 as well as a deduction for the professional costs businesses have to pay when starting up will be a significant boost to many small businesses,” Mr Healey said.